harmonic trading vol 2 - carney 2010

[...]... The ability of the Harmonic Trading methodology to define the critical long-term market turning points has tremendously validated this approach For example, the bear market of 20 08 -2 0 09 possessed a substantial weekly 5-0 pattern that defined the clear make-or-break support zone for the index Although I no longer operated an advisory service, I posted an initial report of the long-term possibilities... have continually strived to improve the Harmonic Trading approach and build upon this foundation Hence, I present Volume Two It is important to note that the material within this book takes Harmonic Trading into new territory Most of the ideas outlined in Harmonic Trading: Volume Two are unprecedented, and they have not been released previously in any other material Volume Two advances the comprehensive... the market or the other Throughout early 20 00, a problem quickly emerged when many 14 Harmonic Trading: Volume Two of the people who initially embraced the Harmonic Trading concepts became disparaged as the bear market progressed In fact, I received e-mails from people who claimed that harmonic price patterns no longer worked The problem was not the failure of harmonic patterns, rather their interpretation... considerable Harmonic support zone at the 800 level.… It is amazing to consider the significance of the 800 area and the price action of the S&P 500 for the past 9 months The clear Bullish AB=CD patterns and the longer-term trend line support are defining this area as a historic point for the index.” (HarmonicTrader.com http://www.harmonictrader.com/members/ dow /harmonic/ markets/spx0303.htm) 22 Harmonic Trading: ... had not released the Bat yet, and I was calling this a Gartley.) (HarmonicTrader.com http://www.harmonictrader.com/members/dow/ harmonic/ markets/nasd0300.htm) 26 Harmonic Trading: Volume Two NASDAQ Composite ($COMPQ): Daily Bearish Bat—March 20 00 Much like the Bearish Gartley in the S&P 500, the Bearish Bat shown in Figure 1.5 was the harmonic pattern that marked the beginning of the bear market for... decade ended Although the “pre-9/11” market climate seems as if it is ancient history, these events hold tremendous significance for today and the future The technical significance of the price action in these markets impacts long-term structural considerations and serves as the established price limits for Harmonic Trading measurements going forward 11 12 Harmonic Trading: Volume Two The following analysis... in Volume Two furthers the specification of the Harmonic Trading methodology by offering a new level of strategic analysis The improved measuring techniques enhance the precision and the overall accuracy of this approach in its ability to define the most critical turning points in the financial markets 4 Harmonic Trading: Volume Two Harmonic Trading: Volume One was a major advancement of the principles... major U.S indices were as follows: • • • • 1998–September 20 00: Bullish September 20 00–April 20 03: Bearish April 20 03–November 20 03: Neutral November 20 03: Bullish I will explain the various pattern developments of the times and my reasons for the analysis presented The recommendations of the advisory service were exclusively based on Harmonic Trading measurement techniques It is important to be mindful... was still down because the overwhelming harmonic setup that completed at the 800 level represented such a fantastic buying opportunity A 0.50 C a c B 2. 0 b D Figure 1 .2 d Chapter 1 Contemporary Market Case Studies from a Harmonic Trading Perspective 21 After the first test of this projected support zone, I reiterated the 800 target a year later in my November 20 02 Standard & Poor’s market report, stating:... assessments regarding any trading methodology I encourage questions and welcome any comments and/or criticism to extend an open debate regarding this material Despite my own beliefs and personal success, I truly encourage you to evaluate this material for yourself 8 Harmonic Trading: Volume Two The Benefits of Advanced Harmonic Trading Techniques I have always said that Harmonic Trading and the pattern . paper) ISBN-10: 0-1 3-7 0515 1-4 (v. 2 : pbk.) 1. Investment analysis. 2. Investments. 3. Portfolio management. I. Title. HG4 529 .C368 20 10 3 32. 63 20 42 dc 22 2009051044 This book is dedicated to Jacob Carney. . Cataloging-in-Publication Data Carney, Scott M., 196 9- Harmonic trading / Scott M. Carney. v. cm. Contents: v. 2. Profiting from the natural order of the financial — ISBN-13: 97 8-0 -1 3-7 051519 -2 (v. 2. the publisher. Printed in the United States of America First Printing May 20 10 ISBN-10: 0-1 3-7 0515 1-4 ISBN-13: 97 8-0 -1 3-7 0515 1-9 Pearson Education LTD. Pearson Education Australia PTY, Limited. Pearson